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2010•Contemporary Economic PolicyOpen access

PRELIMINARY EVIDENCE ON INTERNAL MIGRATION, REMITTANCES, AND TEEN SCHOOLING IN INDIA

Valerie Mueller, Abusaleh Shariff

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Abstract

We examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas of India. We employ a propensity score matching approach to account for the selectivity of households into receiving remittances. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India. (JEL O15, J24, R23)

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What this paper is about

We examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas of India. We employ a propensity score matching approach to account for the selectivity of households into receiving remittances. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India. (JEL O15, J24, R23)

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Available abstract

We examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas of India. We employ a propensity score matching approach to account for the selectivity of households into receiving remittances. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India. (JEL O15, J24, R23)

Key concepts: Receipt, Caste, Human capital, Internal migration, Investment (military), Propensity score matching, Economics, Demographic economics

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